I think Fedi is trying to move their wallets away from on-chain to avoid being targeted as a coin mixing service
Discussion
Ah thats sad, an universal "mass-adoption" wallet definitely needs on chain support as the ecosystem is still very split btw on chain and ln. Can't ask my grandma to go on boltz and swap to ln :)
Yeah 😕 it sucks but it makes sense. Anyone will still be able to allow on-chain pegouts if they run their own federation, but in practice I expect any reasonably-sized federation to intentionally disable them to avoid the state coming after them. Not sure whether on-chain spending will be a first-class citizen in any fedimint wallets, but I think it’s unlikely. Governments are still too powerful.